Me and My Toxic Loan

[Bizzimum]

Hi everyone.

 

I have a secured loan and I'm concerned about how the interest is being charged. It appears to be a variable rate loan, but my payment has never gone up. Infact a couple of years ago my payment was reduced!

 

My interest rate appears to be between 0.6 and 0.7% per month. The loan is over £50,000 and was taken out over 15 years. I asked for no penalty if I paid the loan off early. I was rather surprised when a settlement figure revealed that loads of interest would be added on. I have only just realised the implications of my variable rate and that it is attached to the LIBOR rate not the BoE rate.

The worrying bit from my credit agreement is the ANTICIPATED number of payments:confused:. Persumably if my payment remains the same and the interest rate goes up, so does my number of payments?

 

I'm asking for a Subject Access Request from the broker to try and find out what I actually agreed to.

I'd apreciate any comments and will keep you posted on my progress.

 

Do I need a Subject Access Request from the loan company?

 

I'm reluctant to post the companies involved at the moment - they might be looking! I think the recent interest rate cuts may have opened a rather nasty can of worms as many people seem to be querying their interest rate.

 

I will say that my loan isn't with First Plus - a fact I'm thankful for after reading this forum.

Edited January 18, 2009 by Bizzimum

[midge61]

Hi

 

I would S.A.R the loan company as well. The broker will only supply you with the proposal that he offered you. The loan company will supply all the info since you took out the loan.

[Bizzimum]

Does this sound OK for my Subject Access Request to the broker? I've edited Godmother's template. I don't actually have an account number with the broker, so should I just refer to the loan arranged through them?

 

TIA

 

Dear Sir/Madam

Data Protection Act 1998 Subject Access Request

 

Arrangement of loan by yourselves with Nasty Bank

Please send me the information which I am entitled to under section 7(1) of the Data Protection Act 1998 in relation to detailed occurrences relating to the above arrangement.

The following is by no means an exhaustive list but in the main this is what I require.

 

Please supply me with details of all records you hold on me relevant to this arrangement, including but not limited to:

1. Transcriptions of all telephone conversations recorded and any notes made in relation to telephone conversations by your company

2. Details of the type of loan requested and the product offered.

 

3. Documents relating to any insurance added to the account, including the insurance contract and terms and conditions, date it was added and deleted.

 

4. Specific details of the fees and commission received from the product vendor. 5. A genuine copy of any notice of fair use of my data as required by the Data Protection Act 1998

 

6. A list of third party agencies to whom you have disclosed my personal data and a summary of the nature of the information you have disclosed.

7. A True copy of the consumer credit agreement section 77-79 of the Consumer Credit Act of 1974.

 

Any other information relating to this arrangement.

 

I enclose the statutory maximum fee of £10. You have 40 days in which to comply. Furthermore, if I discover that you have levied disproportionate penalties against me, then I shall be reclaiming them, and also reclaiming the enclosed £10 Data Protection Act subject access request fee.

 

If there is specific information which you require in order to satisfy yourself as to my identity, please let me know by return. However, please note that the above address is the one which you normally use to communicate my private business to me and which you have hitherto found to be acceptable.

Yours faithfully

 

Edited January 18, 2009 by Bizzimum

[midge61]

Hi

 

That sounds fine to me but also send a S.A.R to the loan company itself.

 

Good luck

[Bizzimum]

Thanks Midge. Lets see how it goes.

[Bizzimum]

Well they've both had a couple of weeks and I've received nothing. They were pretty quick to cash the cheques though:rolleyes:.

 

I've been having a few thoughts in the meantime, particularly regarding the signing of a new agreement in 2007 to reduce the interest rate. I have a copy of the original agreement which clearly states that the interest rate is variable, which suggests to me that no new agreement would be required to reduce the rate. This leaves me wondering why they really wanted me to sign a new one and was I tricked/misled into signing an enforceable agreement?

I am so confused as to what the original agreement was supposed to be - I thought it was a fixed rate. I also note that there is no APR or total amount payable on the original agreement. I'm hoping that I haven't shot myself in the foot by signing the new agreement.

 

I wonder why it's taking both parties so long to supply the information? Perhaps they are a bit busy right now:p.

Edited February 26, 2009 by Bizzimum

[Bizzimum]

The 40 days are up tomorrow. Apparently I have SARed the Loan company to the wrong address (still part of the same company, but they seem unable to forward it to the right bit:rolleyes:).

I have a different problem with the broker "Loans.co.uk" who, after a big fine for misselling PPI and and investigation by the ICO for breach of DPA, have ceased trading. The letter went to the last address I have for them and someone has signed for it, but no information has been forthcoming. Ironic that they can share it with the rest of the world, but not with me:lol:.

Anyone got any ideas what I do now? I have a phone number that directs to an MBNA number that no-one ever seems to answer:confused:. Loans.co.uk seem to be trading as a new company First Union, who seem to want nothing to do with them

[Last of the Mohicans]

The 40 days are up tomorrow. Apparently I have SARed the Loan company to the wrong address (still part of the same company, but they seem unable to forward it to the right bit:rolleyes:).

 

 

If you sent the SAR to the address that they have on the headed paper they use to communicate with you, its the right address. Proof being - that address has your data as it writes to you!

If they cant locate their own data controller and send chit to him within the specified time, thats their problem.

[theotherside]

LOANS.co.uk have shut up shop, the person who signed for it would have been the security guard in reception who has very little to do

[Bizzimum]

LOANS.co.uk have shut up shop, the person who signed for it would have been the security guard in reception who has very little to do

 

Presumably all their records are still held somewhere though:confused:?

 

I understand they have been quite obstructive in the past re SARs (their DPA faux pas excepted of course:lol:).

[Bizzimum]

Found this rather interesting info on my broker on the FSA website

 

3. in the part of the Handbook entitled Dispute Resolution: Complaints (DISP) DISP 1.2.21R.

By agreeing to settle at an early stage of the FSA's investigation, Loans.co.uk Ltd qualified for a 30% (stage 1) discount under the FSA's executive settlement procedures. Were it not for this discount the FSA would have imposed a penalty of £650,000 on Loans.co.uk Ltd.

The failings relate to Loans.co.uk Ltd's failure to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems; failure to conduct its business with due skill, care and diligence; and failure to pay due regard to the interests of its customers and treat them fairly.

Loans.co.uk Ltd's breaches are viewed as particularly serious because the failings exposed a large number of customers to the risk of the sale of PPI which was unsuitable for their needs

In particular the following failings were identified:

1. Loans.co.uk Ltd's information gathering processes failed to ensure that sufficient information about personal circumstances was obtained prior to making a recommendation to the customer. This meant that Loans.co.uk Ltd could not ensure that any recommendation made was suitable;

2. Loans.co.uk Ltd failed to ensure that as part of the telephone call advisers would give adequate disclosure of the significant features, terms and exclusions to the customer;

3. Loans.co.uk Ltd failed to put sufficient controls in place to ensure that advisers followed the scripted process when on the telephone to customers and consistently recorded information gathered from the customer over the telephone;

4. Loans.co.uk Ltd failed to implement an adequate monitoring system to ensure the suitability of recommendations;

5. Loans.co.uk Ltd had insufficient record keeping procedures to maintain records of internal decisions; and

6. Loans.co.uk Ltd failed to implement adequate complaint identification and handling procedures.

 

They were heavily fined over PPI, but I wonder if all this applies to their business in general?

[Bizzimum]

I happened to come across my Loans.co.uk application pack today - a pretty pink Fast Track one it is too.

 

The stange thing is that it still contains my loan application form - unsigned, along with the envelope to return it with proof of income and my most recent mortgage statement. In the dark recesses of my memory I seem to recall scanning some stuff and emailing it to them, but it would appear they have never had a signed application form. Is this a good thing from my point of view?

 

ETA Just looked at the covering letter and application form again, whilst showing OH. Curiouser and curiouser, the covering letter is dated 3 years after I made the actual application:eek:. I have never approached the broker since the loan was arranged, the figures all match that original agreement, but the letter is dated 3 years after the event. There is a copy of a FISA booklet dated 2006, so it's not a typo in the date. I think I might have to go and lie down in a darkened room to think this through. Do you think I might wake up and find this is all a dream:confused:?

Edited April 4, 2009 by Bizzimum

[TUTTSI]

Hi Bizzimum

 

You you ever get a letter froms Loans.co.uk in or arround Sept 2007 advising that your some of the data held by this company had been passed to third parties without the consent or knowledge of the company.

 

The reason that I ask is that many of us who were informed of this breach back in Sept 2007 on our data have now been contacted by a company called Cento Client Review, wanting to claim back charges and charging upfront money.

 

At the time of this breach I did a SAR and they even knew my mothers maiden name + much more info. It is very worrying that peoples data could turn up just about anywhere. This incident was reported to the police and the ICO and basically, it died a death untill about a month ago when this reared it's ugly head.

 

Somewhere on CAG there is a thread for loans.Co.UK as a lot of people were involved at that time.

 

Tuttsi x

[Bizzimum]

Yes, I had that letter, but I haven't been contacted by Cento yet. I had the typical spate of phone calls from all and sundry. Loans.co.uk no longer offer loans. They are owned by MBNA now and do introduce their new tame broker First Union.

 

For anyone who needs to contact Loans.co.uk with a complaint, you can find them at

 

Loans.co.uk

Stansfield House

Chester Business Park

Wrexham Road

Chester

CH4 9FB

 

It's part of an MBNA office, although much of MBNA denies their very existence;).

[TUTTSI]

Yes, I had that letter, but I haven't been contacted by Cento yet. I had the typical spate of phone calls from all and sundry. Loans.co.uk no longer offer loans. They are owned by MBNA now and do introduce their new tame broker First Union.

 

For anyone who needs to contact Loans.co.uk with a complaint, you can find them at

 

Loans.co.uk

Stansfield House

Chester Business Park

Wrexham Road

Chester

CH4 9FB

 

It's part of an MBNA office, although much of MBNA denies their very existence;).

 

One more question, have you received any calls regarding deals with Mobiles! as this company director at Cento is also connected with Splash.co.uk. I very much suspect they could be useing the info from data they have and cold call - especially if they have a mobile number they can work out what network you are on - and go from there.

 

If you do get a call from Cento, be very wary and do not give them anymore personal info.

 

Tuttsi x

[Bizzimum]

I still have that to look forward to as well by the sound of it:rolleyes:.

[Bizzimum]

GE have failed to comply with the SAR. I have no amended loan agreement and no underwriting sheet (surprise,surprise!). What do I do now? I have given them a couple of calls re the missing paperwork.

[Guest suziedarkness]

Bizzimum,

 

GE are your worst nightmare when it comes to supplying all the required information in a SARN. Makes you think they have something to hide doesnt it!.

 

Anyway it took me 6 months to get them to comply as all they kept sending me was toilet paper.

 

I got the ICO involved which to be honest, dont know whether helped or not, but at long last I have the info, well most of it anyway.

 

Have you put in writing to GE that the SAR is incomplete and that you still require XY & Z?

 

If not, I would put it in writing that the SARN is incomplete and despite several telephone calls to their office, the information still has not been received. Point out to them that it is their duty under the Data Protection Act 1998 to provide you with all the information they hold on you when requested. Then list the things you know are missing.

 

Its your call then whether you are prepared to take them to court for compliance, if this is the case, (which is what I did) give them 14 days to send out the docs. You can also tell them that you are reporting them to the ICO.

 

Incidentally, if you go onto ICO's website, you can lodge a complaint on there but also they have some useful publications that they will send you. One I got was "Data Protection Act Taking a Case to Court".

 

Keep on at them, they hope you will give up in sure.

 

Suzie

[Bizzimum]

Cheers Suzi. I'm certainly not giving up. There's obviously something they don't want me to know. I must admit that their failure to provide the amended agreement doesn't seem terribly clever on their part.

Did they roll over fairly easily at/before Court?

 

LCUK/MBNA are actively ignoring me too. We'll see;).

[Guest suziedarkness]

It never got to court actually.

 

The ICO wrote to them (eventually) telling them that they had not complied and that they must send what I was asking for and what did they send? another load of rubbish!!

 

So I then wrote to GE again saying enough is enough and giving them 14 days before I filed a court claim. They then sent out what I asked for.

 

The info clearly show commissions that I never authorised together with a whole host of nasties which I am working on.

 

The ICO is a slow process and at the end of the day if GE still dont comply there is nothing they can do. They are just there to gently tap their hand if they dont play ball, but, they are a place to start and if it does go to court for non-compliance, the court will see that you have tried every avenue.

 

You need to keep on their case so that they can see you wont go away, which is what they hope for.

 

Suzie:)

[Bizzimum]

I'm still waiting for SAR documents. I really need to be rid of this loan. Looking at the current interest rate I am facing a balloon payment of a possible £17500:eek:. Bearing in mind I asked for a loan that would be paid off by the time OH retired (the 15 year term) I feel somewhat mis-informed. My original agreement does state minimum monthly payment of £X, but with no illustration of the consequences of not increasing the payment if the interest rate rose. GE obviously carefully leave me in blissful ignorance of what my current interest rate is - apparently I have to find out for myself:confused:. I am informed in tiny writing at the top of my annual statement what interest rate has been applied and when. There is never any suggestion of increasing the payment, in fact the account must have been behind schedule when they reduced the payment.

If I settle the loan would I still be able to go after them (and the broker, if MBNA ever admit they exist:mad:) for mis-selling/secret commission. I can only assume that their reluctance to supply the underwriting sheet speaks volumes:rolleyes:. Where do I stand if they can't/won't supply the revised payment documentation?

[Redfish]

If you took out PPI with your loan then you might be one of the lucky ones. It is likely to make the agreement a 'multiple agreement' - under S.18 of the CCA - which means there needs to be separate prescribed terms for each part, i.e. for the loan and for the PPI separately. It may be that your agreement was not laid out like that - of course you need to see a copy of the agreement to be sure.

 

If you have a multiple agreement that puts any part of the loan under £25,000 then the Consumer Credit Act will apply. Then you can check to see if the agreement is enforceable or not - i.e. if it's missing the prescribed terms (separately stated for each part), then it may be deemed unenforceable.

[Bizzimum]

No PPI at all here.

[Bizzimum]

If you took out PPI with your loan then you might be one of the lucky ones. It is likely to make the agreement a 'multiple agreement' - under S.18 of the CCA - which means there needs to be separate prescribed terms for each part, i.e. for the loan and for the PPI separately. It may be that your agreement was not laid out like that - of course you need to see a copy of the agreement to be sure.

 

If you have a multiple agreement that puts any part of the loan under £25,000 then the Consumer Credit Act will apply. Then you can check to see if the agreement is enforceable or not - i.e. if it's missing the prescribed terms (separately stated for each part), then it may be deemed unenforceable.

 

What exactly is a multiple agreement? I just read that if the loan was over £25000 and was consolidating existing debt that was already covered by the CCA it would be regulated. Does this mean all the consolidated debt had to have been with the consolidating company IYSWIM? Or would it be covered if you were paying off various other regulated debts?